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After-tax contributions

Any contributions that you make to super with money on which you've already paid tax. This includes your after-tax salary or wages or other personal contributions for which you don't claim a tax deduction. These are also known as 'undeducted' or 'non-concessional' contributions.

Age pension

A regular payment from the Government to senior Australians unable to completely support themselves in retirement. A part or full-pension benefit may also be available to many seniors to support their private retirement benefits.

Account-based (or allocated) pension

A type of product that provides regular income payments each year from your superannuation fund, subject to meeting an annual minimum income each year. The annual minimum payment is set by the government and increases gradually with age.

Complying superannuation fund

This is a resident superannuation fund that meets the government's legislative requirements for receiving ongoing concessional tax treatment.

Before-tax / Concessional contributions

Any contributions made to your super before tax is taken out of your pay, including super guarantee and other salary sacrifice contributions that are made by your employer. They also include personal contributions for which you claim a tax deduction. These contributions are also known as 'taxable', 'deductible' or 'concessional' contributions and they are taxed at up to 15% in the super fund.

Benefits tax

Generally superannuation benefits are taxable, either as a lump sum or a pension. However, from 1 July 2007, any amount you receive from a 'taxed superannuation source' at or over age 60 will be tax free and not subject to any tax once you reach age 60.

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Dependants

For superannuation purposes a dependant is defined generally to be a spouse, a de facto spouse, a child, or a person who is dependant on you (i.e. someone who needs your financial and/or domestic support in some case).

Employer contributions

Any contributions made to your super fund by your employer or an associate of your employer.

Government Co-contribution

A payment from the government to help boost super savings for lower income earners. If your total income is $28,980 or less in a year, the government pays $1.50 for every $1 you make in personal super contributions for which you have not claimed a tax deduction, up to a maximum government payment of $1,500 each year. As your earnings increase the maximum co-contribution progressively reduces and finally cuts out when your total income reaches $58,980. Total income includes fringe benefits.

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Member (Superannuation)

You are a member of a superannuation fund if you have joined the fund and will, in the future, receive a benefit from that fund.

Preservation age

The age before which you cannot generally gain access to the preserved benefits of a superannuation fund.

Preserved Benefits

The part of your superannuation benefits that must be maintained either in a superannuation or rollover fund until retirement or after your preservation age. Most superannuation benefits are preserved with the exception of specific non-preserved amounts within a super fund.

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Salary sacrifice

Generally described as pre-tax payments by your employer to your super fund instead of salary. These super contributions are usually in addition to the standard 9% superannuation guarantee requirement.

Superannuation benefit

The payment you receive from your super fund at any stage (for example, at retirement, death or disability or through transition to retirement). This can be either an income or lump sum amount, subject to various superannuation and fund rules.

Super Guarantee (SG) contributions

Your employer is bound by the superannuation guarantee rules to make a contribution to super on your behalf of 9% of your earnings (up to $145,880 per annum). This doesn't apply if you earn less than $450 in a month, are under age 18 or over age 70.

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Tax file number (TFN)

The unique number given to you by the Australian Tax Office that identifies you for tax purposes.

Transition to retirement

Once you reach your preservation age (currently age 55 for most people), you can now withdraw some of your super (up to 10% of your account balance per annum) as an income stream while you keep working. That means you could keep working part-time and wind down into retirement while still accessing some of your superannuation benefits.

Work test

If you are over age 65, you must pass a 'work test' to be able to make super contributions (personal or employer). The test requires you to have first worked at least 40 hours within 30 consecutive days in a financial year.

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